Penn Corp. is analyzing the possible acquisition of Teller Company. Both believes the acquisition will increase its total aftertax annual cash flow by $1,538,939.83 indefinitely. The current market value of Teller is $22,391,830 and that of Penn is $66,730,192. The appropriate discount rate for the incremental cash flow is 11.66%. Penn is trying to decide whether it should offer 37% of its stock or $38,769,101 in cash to Teller's shareholders.

What is the NPV of the cash offer?

HINT: Subtract the cash offer from the value of the combined firm.